Africa must urgently scale up its power generation by at least 16 gigawatts (GW) annually until 2050 and invest $3.2–$4.3 billion each year in transmission infrastructure to avoid a looming energy crisis, according to the Africa Finance Corporation (AFC) in its newly released “State of Africa’s Infrastructure Report 2025.”
The AFC emphasizes that the continent’s basic energy demands—driven by rapid population growth and urbanization—can only be met if grid-connected capacity increases significantly every year. The target of 16 GW annually would bring Africa’s average generation capacity to 0.300 MW per 1,000 people, aligning with current benchmarks in India and Indonesia.
“To meet such transmission needs, Africa will require at least $3.2–4.3 billion annually through 2040,” the report states.
Despite the scale of the challenge, the report highlights significant investment opportunities in sectors such as:
- Solar PV
- Gas-to-power
- Hydropower
- Battery storage
- Grid modernization
The AFC argues that with strategic investments and reforms, Africa can leapfrog legacy energy models and build a dynamic, integrated, and future-ready power system capable of driving long-term economic growth.
“This is not just a challenge—it’s a generational opportunity,” the report concludes.
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